Automotive Industry - The Times Of Central Asia

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Automotive Industry

Kazakhstan’s Auto Industry Expands Output Amid Strong Demand

Kazakhstan’s automotive industry is increasing production on the back of strong domestic demand and ongoing localization policies. However, the sector is expected to face challenges in expanding into export markets in the coming years. In 2025, the country produced approximately 171,000 vehicles, while sales reached around 235,000 units, according to industry data. The broader engineering sector has expanded 8.5-fold over the past decade, reaching a historic high. Automotive manufacturing accounts for about 41% of this segment, making it one of the key non-resource drivers of the economy. One of the main factors behind growth is demand for fleet renewal. According to Zhaslan Azenov, advisor to the president of the Kazakhstan Automobile Union, the country’s passenger car fleet totals around 5.9 million vehicles, with more than 40% older than 20 years. The share of domestically produced vehicles in total sales reached 69% in 2025, reflecting the strengthening of local production, Azenov told The Times of Central Asia. Kazakhstan currently has 11 automotive manufacturers in operation, with one additional project under development. Major production sites are located in Kostanay, Almaty, Semey, Kokshetau, Saran, and Uralsk. Among the most popular brands on the market are Hyundai, Chevrolet, and Kia. The Chevrolet Cobalt remains the top-selling model, followed by the Hyundai Tucson, Kia Sportage, Hyundai Mufasa, and Hyundai Elantra. “Among the most popular models, the absolute leader is the Chevrolet Cobalt. The top five also includes Hyundai Tucson, Kia Sportage, Hyundai Mufasa, and Hyundai Elantra,” the industry representative said. At the same time, the presence of Chinese manufacturers is growing rapidly. Their market share has increased from 2% in 2020 to 39% by the end of 2025, driven by aggressive market entry strategies and plans for localized production. Deepening localization remains a key priority. Projects are underway to produce automotive components domestically, including interior elements, body parts, technical systems, and electronics. This is expected to reduce dependence on imports and lower production costs. “Kazakhstan is transitioning from simple assembly to deep localization. Today, we have a number of production facilities for interior components such as seats, flooring, headliners, and mats. In exterior components, we produce bumpers, plastic parts, and mudguards; in technical systems, exhaust systems, cooling and heating systems, wiring harnesses, fuel and brake lines; as well as consumables such as batteries, tires, paints, and sealants. In electronics, we are developing multimedia systems,” Azenov said. The electric vehicle segment remains at an early stage of development. As of September 2025, just over 22,000 electric vehicles were registered in the country, including around 21,000 passenger cars. Industry growth has also been accompanied by rising employment. The number of workers in automotive manufacturing increased from around 2,000 in 2018 to more than 11,000 in 2025. “It should be noted that the industry’s growth has been accompanied by a significant increase in jobs. If in 2018 just over 2,000 people were employed in automotive manufacturing, by 2025 this figure exceeded 11,000,” Azenov added. According to industry forecasts, vehicle sales could reach around 247,000 units in 2026, while...

Automotive Industry

Kyrgyzstan Seeks to Increase Automobile Imports from China

On April 8, the National Investment Agency of Kyrgyzstan and A-CAR (Chuan Yi LLC) signed a memorandum on investment cooperation in the automotive industry, including the supply and sale of new Chinese cars in Kyrgyzstan and the development of service infrastructure. The Chinese company plans to establish a dealer network and open an official representative office for Central Asia. A-CAR supplies vehicles from leading Chinese and international brands and provides a full range of services, including technical maintenance, vehicle registration, and insurance. A significant portion of vehicles imported from China to Kyrgyzstan are re-exported to Russia rather than remaining in the local market. The duty-free regime for electric vehicles in Kyrgyzstan has significantly boosted imports of Chinese electric cars. As a member of the Eurasian Economic Union (EAEU), Kyrgyzstan benefits from an annual quota allowing the duty-free import of up to 15,000 electric vehicles. Sergey Tselikov, director of Russian automotive analytics agency Autostat, wrote on his Telegram channel that Kyrgyzstan remains the second-largest import channel for new passenger cars into Russia after China. He said 84% of the new passenger cars imported through Kyrgyzstan were manufactured in China, including Chinese, European, and Japanese brands. According to Autostat, Kyrgyzstan is the largest supplier of new passenger cars to Russia among EAEU member countries. In 2025, 53,600 new passenger cars were imported to Russia from Kyrgyzstan, followed by 17,100 cars from Belarus, 11,000 from Kazakhstan, and 344 from Armenia. Kyrgyzstan is also seeking to collaborate with Chinese companies to develop electric vehicle (EV) charging infrastructure. In late March, Energy Minister Taalaibek Ibrayev visited China, where he held a series of meetings with energy and technology companies involved in EV infrastructure development. Negotiations focused on cooperation in energy infrastructure, including the development of EV charging stations and energy storage systems in Kyrgyzstan. These initiatives align with government efforts to promote environmentally friendly transport and reduce air pollution in Bishkek and other major cities. The number of EVs in Kyrgyzstan has been rising steadily, with more than 200 electric vehicles imported into the country daily under a value-added tax (VAT) exemption scheme, according to official figures. Despite this growth, EVs still account for a small share of the country’s total vehicle fleet, about 0.8%, or approximately 15,200 vehicles, according to the Ministry of Natural Resources, Ecology, and Technical Supervision.

Automotive Industry

Kazakhstan’s Auto Market Enters an Era of Industrial Warfare

In 2026, Kazakhstan’s automotive market is undergoing a fundamental transformation. The era of unregulated gray-market imports is coming to an end, while large corporate players are replacing independent importers. The government is deliberately changing the rules of the game by introducing strict tax and administrative barriers to unofficial vehicle imports. Chinese automakers are the main beneficiaries of these changes, rapidly displacing traditional Western brands. For local industrial groups, deep localization is no longer optional but has become a prerequisite for survival, triggering competition for exclusive contracts with Chinese manufacturers and access to government incentives. Legislative Barriers For many years, private imports accounted for a significant share of the market. At their peak in 2023, more than 60% of cars were imported through gray-market schemes. However, new administrative measures are making this model economically unviable. First, a strict quantitative limit has been introduced: an individual may now import only one car per year. Second, importing cars older than three years has become financially prohibitive. The base rate for initial registration has risen to $4,250, while recycling fees have increased and a 15% customs duty applies. Third, technical requirements have been tightened. Vehicles must now comply with the Euro-5 standard, possess a Vehicle Design Safety Certificate (VDS), and be equipped with an emergency call system (EVAK). At the same time, importing vehicles less than three years old is permitted only for legal entities holding a Vehicle Type Approval (VTA) certificate. Additionally, the cancellation of VAT exemptions has stripped independent dealers of their price advantage. As a result, gray imports have declined steadily. They accounted for about 35% of the market in the first half of 2025 and approximately 30% by the end of the year. In 2026, China exerted additional pressure. From January 1, the so-called “180-day rule” took effect: vehicles registered for less than six months cannot be exported without the manufacturer’s permission. This has significantly complicated re-export schemes and slowed capital turnover. Consequently, the gray market has been largely paralysed, and retail sales have shifted under the control of official distributors. The Dominance of Chinese Brands The decline in gray imports has coincided with a broader global realignment of supply chains. Chinese automakers have been the primary beneficiaries. According to the Kazakhstan Automobile Union, by March 2026 Chinese brands had captured more than 40% of the domestic market. Six brands, Chery, Jetour, Changan, Haval, Geely and JAC, now rank among the top ten in sales. They are steadily displacing traditional leaders. A telling example is Toyota, which has fallen to tenth place after losing nearly 60% of its sales year on year. Meanwhile, the electric and hybrid segment is expanding rapidly: sales of China’s BYD have surged by almost 800%. This growth is driven not only by competitive pricing and technological innovation but also by large-scale investment in dealer infrastructure. Under current conditions, Western and Japanese brands appear unlikely to regain their former positions in the near term. Capitalisation in Service and Logistics The shift to a corporate model requires...

Automotive Industry

Kazakhstan’s Automotive Industry Approaches $4 Billion by End of 2025

Kazakhstan’s automotive industry posted record-breaking results in the first 11 months of 2025, with total production valued at nearly $4 billion, already exceeding the full-year total for 2024 by approximately $251 million. According to official data from the Bureau of National Statistics, the industry reached its highest monthly output in November, producing 22,580 units of automotive equipment valued at around $601 million. This marked a 25.5% year-on-year increase in production volume. A record number of passenger cars, trucks, buses, trailers, and specialized vehicles were manufactured during the month. In total, from January through November, Kazakhstan produced 146,163 vehicles worth approximately $3.9 billion, 15.7% more than during the same period in 2024. While physical output remained comparable to previous years, the increase in the total value of production, surpassing $3.6 billion in 2024 and $3.4 billion in 2023, indicates rising added value and growing complexity in domestic manufacturing processes. Automotive production accounted for 41.7% of Kazakhstan’s overall machine-building sector during the first 11 months of 2025, up from the previous year. According to the Kazakhstan Automobile Union (KAS), Allur, based in the Kostanay region, remained the industry leader with more than 79,000 vehicles produced during the reporting period. Southern Kazakhstan also saw strong growth, with over 48,000 cars assembled at the Hyundai Trans Kazakhstan and Hyundai Trans Almaty plants, up 26.7% year-on-year. In the Karaganda region, QazTehna expanded commercial vehicle output by more than 50%. However, production declined in eastern Kazakhstan, particularly in Semey, underscoring regional disparities in industry development. The Chevrolet Cobalt, Hyundai Tucson, Kia Sportage, Hyundai Mufasa, and Hyundai Elantra were the top models produced, and also ranked among the most popular vehicles on the domestic market. The production surge coincided with a revival in consumer demand. As previously reported by The Times of Central Asia, Kazakhstan set a new car sales record in November 2025, further supporting high factory utilization across the country.

Automotive Industry

Škoda Group Plans Joint Venture to Assemble Railway Vehicles in Uzbekistan

Czech manufacturer Škoda Group has announced plans to establish a joint venture in Uzbekistan to assemble railway transport vehicles, according to a statement from the company’s press service. The initiative was unveiled during President Shavkat Mirziyoyev’s official visit to Belgium on October 24, where he held a roundtable meeting with top European business leaders. Among the participants was Škoda Group CEO Petr Novotný, who described Central Asia as a highly promising market. Novotný presented the company’s strategic roadmap for entering Uzbekistan, backed by support from the European Commission and the European Investment Bank. The proposed joint venture will focus on three key areas: assembling railway vehicles under local conditions, providing long-term maintenance and repair services, and launching a Škoda Academy to train and upskill Uzbek specialists. “Each of the three areas represents a concrete step toward fulfilling the new Enhanced Partnership and Cooperation Agreement and the European Global Gateway strategy. We consider Uzbekistan to be a country opening up to new investments from European business partners. It has long been in our sights in terms of our strategic ambitions. We therefore very much welcome the opportunity to contribute to the development of sustainable transport, education, and technological modernization in the local market,” Novotný said. Škoda emphasized that the project aligns with Uzbekistan’s national goals to modernize its transport infrastructure and deepen partnerships with European industry. The company said that high-level discussions in Brussels underscored the strong potential for European technology and expertise to support the sustainable transformation of Uzbekistan’s railway sector.

Automotive Industry

Kazakhstan’s Automotive Industry Boosts Revenues by Over 50% in July

Kazakhstan’s automotive industry posted strong growth in July 2025, producing 11,700 vehicles valued at KZT 164.9 billion ($305.3 million), according to the Kazakhstan Automobile Union. This represents a 50.1% increase in production volume compared to July 2024. Data from the National Statistics Bureau shows that in July 2024, the country produced 7,800 vehicles worth KZT 100.9 billion ($186.8 million). Over the past year, the industry has not only expanded output but also significantly boosted revenue. From January to July 2025, Kazakhstan produced 83,200 vehicles valued at KZT 1.16 trillion ($21.4 billion), marking a 16.7% year-on-year increase. The automotive sector now accounts for 40.7% of the national engineering industry. Passenger cars led the growth, with 75,400 units produced, up 19% from the same period last year. Bus production also saw a 5.5% uptick, totaling more than 1,300 units. In contrast, truck output declined by 10.5% to 4,100 vehicles. Manufacturers also turned out 1,900 trailers and semi-trailers, along with 453 special-purpose vehicles. Regional Breakdown Kostanay remains the top manufacturing hub, producing 45,700 vehicles, a 6.9% increase, at Allur’s facilities. In Almaty, the Hyundai Trans Kazakhstan and Hyundai Trans Almaty plants reported a record 41.8% increase, assembling 31,200 vehicles. Production trends varied in other regions: Semey: Down 17.5% (2,400 units) Karaganda region (QazTehna): Up 28.1% Kokshetau (KAMAZ-Engineering): Up 34.6% Top Brands and Models The most produced brands from January to July were: Hyundai: 30,800 units Chevrolet: 16,500 Kia: 14,800 Jetour: 7,100 Jac: 5,600 Leading models included the Chevrolet Cobalt (13,600 units), Hyundai Tucson (11,900), Kia Sportage (nearly 7,000), Hyundai Elantra (4,900), and Hyundai Mufasa (4,600). Anar Makasheva, President of the Kazakhstani Automobile Union, credited the industry's progress to the expertise of more than 8,000 specialists: “The growth in production strengthens the position of the domestic automotive industry and opens up new opportunities for enterprises.” She also announced the upcoming launch of two new plants: the multi-brand Astana Motors Manufacturing Kazakhstan facility in Almaty and a new KIA production line in Kostanay. Together, these projects are expected to create over 5,000 jobs. As previously reported by The Times of Central Asia, Kazakhstan set a record for car sales in 2024. Domestic automotive production is projected to reach approximately 150,000 vehicles in 2025.